The scenario of Indians spending on physical goods and experiences is on its way to change by 2030. Yes, you read that right. According to a report, Indians will be spending more on experiences as compared to physical goods in the coming years. The report was published by one of the renowned global real estate services and investment firms, CBRE Research. Here’s everything you must know about this CBRE India hospitality report and its findings on experiential spending by Indians.
Indians Will Spend More On Experiences Than Physical Goods
CBRE says that Indians will be spending more on experiences like recreational activities, hotels, travel, restaurants, and cultural activities between 2025 and 2030.
It further elaborates that during this period, the household expenditure on physical goods is likely to grow at a 9.1 percent compound annual growth rate (CAGR). But the expenditure on experiences is likely to grow at a 10.3 percent CAGR. The expenditure on hotel accommodation is also expected to grow at a 10.6 percent CAGR. This will soon make it one of the fastest-growing consumer expenditure segments in India.
The report says that consumer preferences are changing, especially among the younger generations. This change is driving a shift towards experience-led shopping and not physical goods across the country.
It also notes that this shift has been accelerated by the COVID-19 pandemic. People are making up for the time lost because of the pandemic by spending more on hospitality, travel, and leisure activities since 2022.
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Gen-Z Is the Key Driver Of This Shift In Expenditure
The report by CBRE also states that Generation Z, or Gen-Z, is the key driver of this shift. It explains that Gen-Z (individuals born between 1997 and 2012) represents the Asia Pacific region’s largest demographic group. As more and more members of this generation will witness financial freedom, their spending will also increase faster.
It mentioned that Gen-Z is increasingly attracted to experience-driven or personalised offerings. Their travel preferences include personalised services, wellness integration, seamless technology, community-oriented spaces with fun activities, cultural events, and curated design environments.
Hence, the report noted that the growth of lifestyle hotels has significantly surpassed the broader hotel industry. During the 2015- 2025 period, the hotel supply expanded at a 5 percent CAGR, while the lifestyle hotels witnessed a growth rate of 19 percent CAGR.
Also Read: How Gen Z Is Quietly Rewriting Travel Trends In India
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Summing Up
A report by the reputed firm CBRE states that Indians will be spending more on experiences as compared to physical goods in 2030. This shift in expenditure has been led by Generation Z as the largest demographic group.
